Question

​​From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT
Dr.					Cr.
Receipts		₹	Payments	₹
To Cash in Hand		40,000	​By Salary	20,000
To Cash at Bank		1,00,000	By Repair Expenses	5,000
To Donations		50,000	By Furniture	60,000
To Subscriptions		1,20,000	By Miscellaneous Expenses	5,000
To Entrance Fees		10,000	By Investments	60,000
To Interest on Investments		1,000	By Insurance Premium	2,000
To Interest Received from Bank		4,000	By Billiard Table	80,000
To Sale of Old Newspapers		1,500	By Paper, Ink, etc	1,500
To Sale of Drama Tickets		10,500	By Drama Expenses	5,000
			By Cash in Hand (closing)	26,500
			By Cash at Bank (closing)	72,000
		3,37,000		3,37,000

Additional information :
(i) Subscriptions in arrear for the year ended 31st March, 2018 ​₹ 9,000 and subscriptions in advance for the year ended 31st March , 2019 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accured oninvestment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

Answer 1

Income and Expenditure Account for the year ended March 31, 2018
Dr.						Cr.
Expenditure		Amount (Rs)	Income			Amount (Rs)
Salary		20,000	Subscriptions	1,20,000
Repair Expenses		5,000	Add: Outstanding	9,000
Miscellaneous Expenses	5,000		Less: Advance	3,500		1,25,500
Less: Prepaid	900	4,100	Entrance Fees			10,000
Insurance Premium	2,000		Interest on Investments	1,000
Add: Outstanding	400	2,400	Add: Accrued interest (60,000 × 8% × 5/12)	2,000		3,000
Paper, Ink, etc.		1,500	Donation			50,000
Surplus (Balancing Figure)		1,66,500
			Interest received from Bank			4,000
			Sale of Old Newspapers			1,500
			Receipts from Sale of Drama Tickets		10,500
			Less: Drama Expenses		5,000	5,500
		1,99,500				1,99,500

Balance Sheet as on April 01, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors for Billiard Table	80,000	Billiard Table	3,00,000
		Cash in hand	40,000
Capital Fund (Balancing Figure)	3,60,000	Cash at bank	1,00,000
	4,40,000		4,40,000

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscriptions		3,500	Subscriptions Outstanding		9,000
Insurance Premium Outstanding		400	Prepaid Miscellaneous Expenses		900
Capital Fund	3,60,000		Investments	60,000
Add: Surplus	1,66,500	5,26,500	Add: Accrued Interest	2,000	62,000
			Billiard Table		3,00,000
			Furniture		60,000
			Cash in hand		26,500
			Cash at bank		72,000
		5,30,400			5,30,400